,,ii  #aai? ,,congress  #a/ ,session    
,s4 #afje  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #f1 #bjbe,mr4     
,tillis introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to modify c]ta9   
provisions relat+ to ! taxation (       
int]national entities4  #a4 ,%ort title1
 etc  7a7 ,%ort title ,?is ,act may be  
cit$ z ! ,int]national ,competition =   
,am]ican ,jobs ,act4  7b7 ,am5dm5t (    
#aihf code ,except z o!rwise expressly  
provid$1 :5ev] 9 ?is ,act an am5dm5t or 
repeal is express$ 9 t]ms ( an am5dm5t  
to1 or repeal (1 a section or o!r       
provision1 ! ref]5ce %all be consid]$ to
 be made to a section or o!r provision (
 ! ,int]nal ,rev5ue ,code ( #aihf4  #b4 
,p]man5t ext5sion ( look-?ru rule =     
controll$ =eign corporations  7a7 ,9    
g5]al ,section #ied7;c77#f77;,c7 is     
am5d$ by /rik+ & be=e ,janu>y #a1       
#bjbf14  7b7 ,effective date ,! am5dm5t 
made by ?is section %all apply to       

taxable ye>s ( =eign corporations beg9n+
 aft] ,decemb] #ca1 #bjbe1 & to taxable 
ye>s ( ,unit$ ,/ates %>ehold]s ) or )9  
:i* su* taxable ye>s ( =eign            
corporations end4  #c4 ,modification (  
d$uction = =eign-d]iv$ intangible income
 & global intangible l[-tax$ income  7a7
 ,9 g5]al ,section #bej7;a7 is am5d$ to 
read z foll[s3  7a7 ,all[ance ( d$uction
 ,9 ! case ( a dome/ic corporation = any
 taxable ye>1 !re %all be all[$ z a     
d$uction an am\nt equal to ! sum (--    
7#a7 #cg4e p]c5t ( ! =eign-d]iv$        
intangible income ( su* dome/ic         
corporation = su* taxable ye>1 plus     
7#b7 #ej p]c5t (-- 7,a7 ! global        
intangible l[-tax$ income am\nt 7if any7
 :i* is includ$ 9 ! gross income ( su*  
dome/ic corporation "u section #iea;,a =
 su* taxable ye>1 &  7,b7 ! am\nt treat$
 z a divid5d receiv$ by su* corporation 
"u section #gh :i* is attributable to ! 
am\nt describ$ 9 subp>agraph 7,a74  4   
7b7 ,d$uction n ,to apply aga9/ divid5ds
 receiv$ d$uction limitation ,section   

#bdf7;b77#a7 is am5d$ by /rik+          
subsection 7a7 & 7b7 ( section #bde1 &  
section #bej ! fir/ place x appe>s &    
ins]t+ & subsection 7a7 & 7b7 ( section 
#bde4  7c7 ,d$uction tak5 into acc\nt 9 
det]m9+ net op]at+ loss d$uction        
,section #agb7;d7 is am5d$ by /rik+     
p>agraph 7#i74  7d7 ,exp5se apportionm5t
 limit$ to directly relat$ exp5ses      
,section #bej7;b77#c77;,a77ii7 is am5d$ 
to read z foll[s3  7ii7 exp5ses &       
d$uctions 7includ+ taxes7 directly      
relat$ to su* gross income4  4  7e7     
,d$uction = =eign-,d]iv$ d$uction       
eligible income  7#a7 ,9 g5]al ,section 
#bej7;a77#a71 z am5d$ by subsection 7a71
 is am5d$ by /rik+ =eign-d]iv$          
intangible income & ins]t+ =eign-d]iv$  
d$uction eligible income4  7#b7 ,con=m+ 
am5dm5ts  7,a7 ,section #bej7;b71 z     
am5d$ by subsection 7c71 is am5d$-- 7i7 
by /rik+ p>agraphs 7#a7 & 7#b71  7ii7 by
 r$esignat+ p>agraphs 7#d7 & 7#e7 z     
p>agraphs 7#a7 & 7#b71 respectively1 &  
by mov+ su* p>agraphs be=e p>agraph     

7#c71  7iii7 9 p>agraph 7#b77;,b77ii71 z
 s r$esignat$1 by /rik+ p>agraph        
7#d77;,b7 & ins]t+ p>agraph 7#a77;,b71 &
  7iv7 by /rik+ intangible 9 ! head+    
!re( & ins]t+ d$uction eligible4  7,b7  
7i7 ,! head+ = section #bej is am5d$ by 
/rik+ intangible 9 ! head+ !re( & ins]t+
 d$uction eligible4  7ii7 ,! item relat+
 to section #bej 9 ! table ( sections = 
"p ,,viii ( sub*apt] ,b ( *apt] #a is   
am5d$ by /rik+ intangible & ins]t+      
d$uction eligible4  7f7 ,look-,?ru =    
int]e/ paym5ts ,section #bej7;b77#b71 z 
r$esignat$ "u subsection 7e71 is am5d$  
by add+ at ! end ! foll[+3 ,= purposes (
 ?is subsection1 =eign-d]iv$ d$uction   
eligible income %all include int]e/ paid
 by a controll$ =eign corporation to    
corporation t is a ,unit$ ,/ates        
%>ehold] ) respect to su* =eign         
corporation if su* controll$ =eign      
corporation is relat$ 7)9 ! mean+ (     
section #ied7;d77 to su* ,unit$ ,/ates  
%>ehold] & su* int]e/ is an am\nt :i* is
 describ$ 9 section                     

#iea;,a7c77#b77;,a77ii7 ) respect to su*
 controll$ =eign corporation4 ,to !     
ext5t provid$ by ! ,secret>y 9          
regulations1 ! prec$+ s5t5ce %all n     
apply to int]e/ paid by a controll$     
=eign corporation to a relat$ ,unit$    
,/ates %>ehold] if su* int]e/ is        
directly relat$ to int]e/ exp5se ( su*  
%>ehold] 7or ano!r relat$ p]son74 4  7g7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ,decemb] #ca1 #bjbe4  #d4   
,modifications to base erosion m9imum   
tax  7a7 ,base erosion m9imum tax am\nt 
det]m9$ )\t reg>d to cr$its  7#a7 ,9    
g5]al ,section #ei;,a7b77#a77;,b7 is    
am5d$ to read z foll[s3  7,b7 an am\nt  
equal to ! regul> tax liability 7z def9$
 9 section #bf7;b77 ( ! taxpay] = !     
taxable ye>4  4  7#b7 ,con=m+ am5dm5t   
,section #ei;,a7b7 is am5d$ by /rik+    
p>agraph 7#d74  7b7 ,application ( g5]al
 bus9ess cr$it aga9/ beat ,! second     
s5t5ce ( section #ch7;c77#a7 is am5d$ by
 /rik+ & ! tax impos$ by section #ee &  

ins]t+ 1 ! tax impos$ by section #ee1 & 
! tax impos$ by section #ei;,a4  7c7    
,elim9ation ( modifications = taxable   
ye>s aft] #bjbe  7#a7 ,9 g5]al ,section 
#ei;,a7b7 is am5d$ by /rik+ p>agraph    
7#b7 & r$esignat+ p>agraph 7#c7 z       
p>agraph 7#b74  7#b7 ,con=m+ am5dm5ts   
7,a7 ,section #ei;,a7b77#a7 is am5d$ by 
/rik+ p>agraphs 7#b7 & 7#c7 & ins]t+    
p>agraph 7#b74  7,b7 ,p>agraph 7#b7 (   
section #ei;,a7b71 z r$esignat$ by      
p>agraph 7#a71 is am5d$ by /rik+ "u     
p>agraphs 7#a77;,a7 & 7#b77;,a7 %all ea*
 be increas$ & ins]t+ "u p>agraph       
7#a77;,a7 %all be increas$4  7,c7       
,section #ei;,a7e77#a77;,c7 is am5d$ by 
/rik+ subsection 7b77#c77;,b7 & ins]t+  
subsection 7b77#b77;,b74  7d7 ,expansion
 & consolidation ( rules ,to exempt     
c]ta9 paym5ts f treatm5t z base erosion 
paym5ts  7#a7 ,9 g5]al ,section #ei;,a  
is am5d$ by r$esignat+ subsection 7i7 z 
subsection 7j7 & by ins]t+ aft]         
subsection 7h7 ! foll[+ new subsection3 
7i7 ,c]ta9 paym5ts n treat$ z base      

erosion paym5ts  7#a7 ,exception =      
paym5ts on :i* tax is impos$  7,a7 ,9   
g5]al ,an am\nt %all n be treat$ z a    
base erosion paym5t if tax is 7or 0 at !
 "t ( paym5t or accrual7 impos$ by ?is  
*apt] ) respect to su* am\nt 7o!r ?an by
 ?is section74  7,b7 ,treatm5t ( c]ta9  
d$uctions ,= purposes ( subp>agraph     
7,a71 tax %all be treat$ z impos$ by ?is
 *apt] )\t reg>d to any d$uction all[$  
"u "p ,,viii ( sub*apt] ,b4  7,c7       
,application ( c]ta9 rules ,! am\nt n   
treat$ z a base erosion paym5t by reason
 ( ?is p>agraph %all be det]m9$ "u rules
 simil> to ! rules ( section            
#afc7;j77#e7 7z 9 effect be=e ! date ( !
 enactm5t ( ,public ,law #aae-ig74  7#b7
 ,exception = c]ta9 paym5ts subject to  
suffici5t =eign tax  7,a7 ,9 g5]al ,an  
am\nt %all n be treat$ z a base erosion 
paym5t if ! taxpay] e/abli%es to !      
satisfaction ( ! ,secret>y t su* am\nt 0
 made to a =eign p]son :i* is a relat$  
p>ty ( ! taxpay] t is subject to an     
effective rate ( =eign income tax 7z    

def9$ 9 section #ijd7;d77#b77;,f77 :i*  
is n less ?an #ah4i p]c5t4  7,b7 ,c]ta9 
paym5ts to relat$ p>ties ,to ! ext5t    
provid$ by ! ,secret>y 9 regulations1 an
 am\nt paid to a =eign p]son :i* is a   
relat$ p>ty ( ! taxpay] %all be treat$ z
 paid to ano!r =eign p]son :i* is a     
relat$ p>ty ( ! taxpay] if su* second   
=eign p]son is subject to an effective  
rate ( =eign income tax 7z def9$ 9      
section #ijd7;d77#b77;,f77 :i* is less  
?an #ah4i p]c5t1 to ! ext5t ! am\nt s   
paid directly or indirectly funds a     
paym5t to su* second =eign p]son4  7,c7 
,det]m9ation on basis ( applicable      
f9ancial /atem5ts ,except z o!rwise     
provid$ by ! ,secret>y "u subp>agraph   
7,d71 ! effective rate ( =eign income   
tax ) respect to any am\nt may be       
e/abli%$ on ! basis ( applicable        
f9ancial /atem5ts 7z def9$ 9 section    
#dea7;b77#c774  7,d7 ,regulations ,!    
,secret>y %all issue su* regulations or 
o!r guidance z may be necess>y or       
appropriate to c>ry out ! purposes ( ?is

 p>agraph1 includ+ regulations or o!r   
guidance provid+ proc$ures = det]m9+ !  
effective rate ( =eign income tax to :i*
 any am\nt is subject4 ,su* proc$ures   
may require t any transaction or s]ies (
 transactions among multiple p>ties be  
re*>act]iz$ z "o or m transactions      
directly among any #b or m ( su* p>ties 
:]e ! ,secret>y det]m9es t su*          
re*>act]ization is appropriate to c>ry  
out1 or prev5t avoidance (1 ! purposes (
 ?is section4  7#c7 ,exception = c]ta9  
am\nts ) respect to s]vices ,subsections
 7d77#a7 & 7d77#b7 %all n apply to s mu*
 ( any am\nt paid or accru$ by a taxpay]
 = s]vices z does n exce$ ! total       
s]vices co/ ( su* s]vices4 ,! prec$+    
s5t5ce %all n apply unless su* s]vices  
meet ! requirem5ts = eligibility = use (
 ! s]vices co/ me?od "u section #dhb    
7det]m9$ )\t reg>d to ! requirem5t t !  
s]vices n contribute significantly to   
fundam5tal risks ( bus9ess success or   
failure74  4  7#b7 ,con=m+ am5dm5t      
,section #ei;,a7d7 is am5d$ by /rik+    

p>agraph 7#e74  7e7 ,o!r modifications  
7#a7 ,section #ei;,a7b77#c77;,b77ii7 is 
am5d$ by /rik+ regi/]$ securities deal] 
& ins]t+ securities deal] regi/]$4  7#b7
 ,section #ei;,a7h77#b77;,b7 is am5d$ by
 /rik+ section #fjch;,b7b77#b7 & ins]t+ 
section #fjch;,a7b77#b74  7#c7 ,section 
#ei;,a7j77#b71 z r$esignat$ by          
subsection 7c71 is am5d$ by /rik+       
subsection 7g77#c7 & ins]t+ subsection  
7h77#c74  7f7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbe4  #e4 ,modification ( =eign  
tax cr$it limitation baskets  7a7       
,modification ( =eign tax cr$it         
limitation baskets  7#a7 ,9 g5]al       
,section #ijd7;d77#a7 is am5d$ by /rik+ 
subp>agraphs 7,a7 & 7,b7 & by r$esignat+
 subp>agraphs 7,c7 & 7,d7 z subp>agraphs
 7,a7 & 7,b71 respectively4  7#b7       
,con=m+ am5dm5ts  7,a7 ,section         
#ijd7;d77#b77;,a77ii7 is am5d$ by /rik+ 
income describ$ 9 p>agraph 7#a77;,a71   
=eign bran* income1 &4  7,b7 ,section   

#ijd7;c7 is am5d$ by /rik+ ! la/ s5t5ce4
  7,c7 7i7 ,section #ijd7;d77#b7 is     
am5d$ by /rik+ subp>agraph 7,j7 & by    
r$esignat+ subp>agraph 7,k7 z           
subp>agraph 7,j74  7ii7 ,section        
#bej7;b77#c77;,a77i77,,vi7 is am5d$ to  
read z foll[s3  7,,vi7 ! bus9ess pr(its 
( su* corporation :i* are attributable  
7"u rules e/abli%$ by ! ,secret>y7 to #a
 or m qualifi$ bus9ess units 7z def9$ 9 
section #ihi7;a77 9 #a or m =eign       
c\ntries1 ov]  4  7,d7 ,section         
#ijd7;d77#b77;,j71 z r$esignat$ by      
subp>agraph 7,c77i71 is am5d$ by /rik+  
#bjjg ea* place x appe>s 9 ! text & 9 ! 
head+ & ins]t+ #bjbf4  7#c7 ,transition 
rule ,! ,secret>y ( ! ,treasury 7or !   
,secret>y's delegate7 %all e/abli% rules
 = ! application ( section #ifj7;c77#b7 
) respect to categories ( income        
describ$ 9 subp>agraphs 7,a7 & 7,b7 (   
section #ijd7;d77#b7 7z 9 effect =      
taxable ye>s beg9n+ be=e ,janu>y #a1    
#bjbf74  7b7 ,rules = allocation ( c]ta9
 d$uctions to =eign s\rce global        

intangible l[-tax$ income = purposes (  
=eign tax cr$it limitation ,section     
#ijd7;b7 is am5d$ by add+ at ! end !    
foll[+ new p>agraph3  7#e7 ,d$uctions   
treat$ z allocable to =eign s\rce global
 intangible l[-tax$ income ,9 ! case ( a
 dome/ic corporation & solely = purposes
 ( ! application ( subsection 7a7 )     
respect to am\nts includible inc gross  
income by reason ( section #iea;,a 7o!r 
?an passive category income71 !         
taxpay]'s taxable income f s\rces )\t ! 
,unit$ ,/ates %all be det]m9$-- 7,a7 by 
allocat+ & apportion+ any d$uction all[$
 "u section #bej7;a77#b7 7& any d$uction
 all[$ "u section #afd7;a77#c7 = taxes  
impos$ on am\nts describ$ 9 section     
#bej7;a77#b77 to su* income1 &  7,b7 by 
allocat+ & apportion+ any o!r d$uction  
to su* income only if ! ,secret>y       
det]m9es t su* d$uction is directly     
allocable to su* income4  ,any d$uction 
:i* w\ld 7b = subp>agraph 7,b77 h be5   
allocat$ or apportion$ to su* income    
%all only be allocat$ or apportion$ to  

income :i* is f s\rces )9 ! ,unit$      
,/ates4  4  7c7 ,effective date  7#a7 ,9
 g5]al ,except z provid$ 9 p>agraph     
7#b71 ! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbe4  7#b7 ,modification
 ( =eign tax cr$it c>ryback & c>ry=w>d  
,! am5dm5t made by subsection           
7a77#b77;,b7 %all apply to taxes paid or
 accru$ 9 taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjbe4  #f4 ,re/oration ( 
limitation on d[nw>d attribution ( /ock 
own]%ip 9 apply+ con/ructive own]%ip    
rules  7a7 ,9 g5]al ,section #ieh7;b7 is
 am5d$-- 7#a7 by ins]t+ aft] p>agraph   
7#c7 ! foll[+3  7#d7 ,subp>agraphs 7,a71
 7,b71 & 7,c7 ( section #cah7;a77#c7    
%all n be appli$ s z to consid] a ,unit$
 ,/ates p]son z own+ /ock :i* is own$ by
 a p]son :o is n a ,unit$ ,/ates p]son4 
1 &  7#b7 by /rik+ ,p>agraph 7#a7 9 !   
la/ s5t5ce & ins]t+ ,p>agraphs 7#a7 &   
7#d74  7b7 ,=eign controll$ ,unit$      
,/ates %>ehold]s ,subp>t ,f ( "p ,,iii (
 sub*apt] ,n ( *apt] #a is am5d$ by     

ins]t+ aft] section #iea;,a ! foll[+ new
 section3  #iea;,b4 ,am\nts includ$ 9   
gross income ( =eign controll$ ,unit$   
,/ates %>ehold]s  7a7 ,9 g5]al ,9 ! case
 ( any =eign controll$ ,unit$ ,/ates    
%>ehold] ( a =eign controll$ =eign      
corporation-- 7#a7 ?is subp>t 7o!r ?an  
sections #iea;,a1 #iea7;b71 & #ieg7 %all
 be appli$ ) respect to su* %>ehold]    
7sep>ately f1 & 9 addition to1 !        
application ( ?is subp>t )\t reg>d to   
?is section7-- 7,a7 by sub/itut+ =eign  
controll$ ,unit$ ,/ates %>ehold] =      
,unit$ ,/ates %>ehold] ea* place x      
appe>s !re91 &  7,b7 by sub/itut+ =eign 
controll$ =eign corporation = controll$ 
=eign corporation ea* place x appe>s    
!re91 &  7#b7 section #iea;,a %all be   
appli$ ) respect to su* %>ehold]-- 7,a7 
by treat+ ea* ref]5ce to ,unit$ ,/ates  
%>ehold] 9 su* section z includ+ a      
ref]5ce to su* %>ehold]1 &  7,b7 by     
treat+ ea* ref]5ce to controll$ =eign   
corporation 9 su* section z includ+ a   
ref]5ce to su* =eign controll$ =eign    

corporation4  7b7 ,=eign controll$      
,unit$ ,/ates %>ehold] ,= purposes ( ?is
 section1 ! t]m =eign controll$ ,unit$  
,/ates %>ehold] means1 ) respect to any 
=eign corporation1 any ,unit$ ,/ates    
p]son :i* w\ld be a ,unit$ ,/ates       
%>ehold] ) respect to su* =eign         
corporation if-- 7#a7 section #iea7;b7 7
 appli$ by sub/itut+ m ?an #ej p]c5t =  
#aj p]c5t or m1 &  7#b7 section #ieh7;b7
 7 appli$ )\t reg>d to p>agraph 7#d7    
!re(4  7c7 ,=eign controll$ =eign       
corporation ,= purposes ( ?is section1 !
 t]m =eign controll$ =eign corporation  
means a =eign corporation1 o!r ?an a    
controll$ =eign corporation1 :i* w\ld be
 a controll$ =eign corporation if       
section #ieg7;a7 7 appli$-- 7#a7 by     
sub/itut+ =eign controll$ ,unit$ ,/ates 
%>ehold]s = ,unit$ ,/ates %>ehold]s1 &  
7#b7 by sub/itut+ section #ieh7;b7 7o!r 
?an p>agraph 7#d7 !re(7 = section       
#ieh7;b74  7d7 ,regulations ,! ,secret>y
 %all prescribe su* regulations or o!r  
guidance z may be necess>y or           

appropriate to c>ry out ! purposes ( ?is
 section1 includ+ regulations or o!r    
guidance-- 7#a7 to treat a =eign        
controll$ ,unit$ ,/ates %>ehold] or a   
=eign controll$ =eign corporation z a   
,unit$ ,/ates %>ehold] or z a controll$ 
=eign corporation1 respectively1 =      
purposes ( provisions ( ?is title o!r   
?an ?is subp>t1 &  7#b7 to prev5t !     
avoidance ( ! purposes ( ?is section4  4
  7c7 ,cl]ical am5dm5t ,! table (       
sections = subp>t ,f ( "p ,,iii (       
sub*apt] ,n ( *apt] #a is am5d$ by      
ins]t+ aft] ! item relat+ to section    
#iea;,a ! foll[+ new item3  ,sec4       
#iea;,b4 ,am\nts includ$ 9 gross income 
( =eign controll$ ,unit$ ,/ates         
%>ehold]s4  4  7d7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to-- 7#a7 ! la/ taxable ye> ( =eign     
corporations beg9n+ be=e ,janu>y #a1    
#bjbf1 & ea* subsequ5t taxable ye> ( su*
 =eign corporations1 &  7#b7 taxable    
ye>s ( ,unit$ ,/ates p]sons 9 :i* or )  
:i* su* taxable ye>s ( =eign            

corporations end4  7e7 ,no inf]5ce ,!   
am5dm5ts made by ?is section %all n be  
con/ru$ to create any inf]5ce ) respect 
to ! prop] application ( any provision (
 ! ,int]nal ,rev5ue ,code ( #aihf )     
respect to taxable ye>s beg9n+ be=e !   
taxable ye>s to :i* su* am5dm5ts apply4 
#g4 ,c>ryov] ( net ,,cfc te/$ loss  7a7 
,9 g5]al ,section #iea;,a7c7 is am5d$ by
 add+ at ! end ! foll[+ new p>agraph3   
7#c7 ,c>ryov] ( net ,,cfc te/$ loss     
7,a7 ,9 g5]al ,if ! am\nt describ$ 9    
p>agraph 7#a77;,b7 ) respect to any     
,unit$ ,/ates %>ehold] = any taxable ye>
 ( su* ,unit$ ,/ates %>ehold] 7det]m9$  
aft] ! application ( ?is p>agraph )     
respect to am\nts aris+ 9 prec$+ taxable
 ye>s7 exce$s ! am\nt describ$ 9        
p>agraph 7#a77;,a7 ) respect to su*     
%>ehold] ( su* taxable ye>1 ! am\nt     
o!rwise describ$ 9 p>agraph 7#a77;,b7 ) 
respect to su* %>ehold] = ! succe$+     
taxable ye> %all be increas$ by ! am\nt 
( su* excess4  7,b7 ,prop] adju/m5t 9   
allocations ( global intangible l[-tax$ 

income to controll$ =eign corporations  
,prop] adju/m5ts %all be made 9 !       
application ( subsection 7f77#b77;,b7 to
 take into acc\nt any decrease 9 global 
intangible l[-tax$ income by reason ( ! 
application ( subp>agraph 7,a74  4  7b7 
,application ( rules ) respect to       
own]%ip *anges ,section #chb7;d7 is     
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#d7 ,application to c>ryov] 
( net ,,cfc te/$ loss ,! t]m pre-*ange  
loss %all include any excess c>ri$ ov]  
"u section #iea;,a7c77#c7 "u rules      
simil> to ! rules ( p>agraph 7#a74  4   
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s (
 =eign corporations beg9n+ aft] ,decemb]
 #ca1 #bjbe1 & to taxable ye>s ( ,unit$ 
,/ates %>ehold]s 9 :i* or ) :i* su*     
taxable ye>s ( =eign corporations end4  
#h4 ,r$et]m9ation ( =eign taxes & relat$
 claims  7a7 ,9 g5]al ,section #ije7;c7 
is am5d$-- 7#a7 9 p>agraph 7#a71 by     
/rik+ or at ! end ( subp>agraph 7,b7 &  
by ins]t+ aft] subp>agraph 7,c7 ! foll[+

 new subp>agraphs3  7,d7 ! taxpay] makes
 a timely *ange 9 its *oice to claim a  
cr$it or d$uction = taxes paid or       
accru$1 or  7,e7 !re is any o!r *ange 9 
! am\nt1 or treatm5t1 ( taxes1 :i*      
affects ! taxpay]'s tax liability "u ?is
 *apt]1  1  7#b7 9 p>agraph             
7#b77;,b77i71 by ins]t+ 1 except z      
o!rwise provid$ by ! ,secret>y1 aft]    
%all1 &  7#c7 by /rik+ accru$ 9 ! head+ 
!re(4  7b7 ,modification to "t = claim+ 
cr$it or d$uction ,section #ija7;a7 is  
am5d$ by /rik+ ! second s5t5ce & ins]t+ 
! foll[+3 ,su* *oice = any taxable ye>  
may be made or *ang$ at any "t be=e !   
expiration ( ! applicable p]iod         
prescrib$ by section #feaa = mak+ a     
claim = cr$it or refund ( an ov]paym5t (
 ! tax impos$ by ?is *apt] = su* taxable
 ye> t is attributable to su* am\nts44  
7c7 ,modification to special p]iod (    
limitation ,section #feaa7;d77#c7 is    
am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7  
by ins]t+ a *ange 9 ! liability = be=e  
any taxes paid or accru$1  7,b7 by /rik+

 actually paid & ins]t+ paid 7or deem$  
paid "u section #ifj71 &  7,c7 by ins]t+
 *ange 9 ! liability = be=e =eign taxes 
9 ! head+ !re(1 &  7#b7 9 subp>agraph   
7,b71 by /rik+ ! all[ance ( a cr$it = ! 
taxes & ins]t+ ! all[ance ( an          
additional cr$it by reason ( ! *ange 9  
liability = ! taxes4  7d7 ,effective    
date  7#a7 ,9 g5]al ,except z o!rwise   
provid$ 9 ?is subsection1 ! am5dm5ts    
made by ?is section %all apply to taxes 
paid or accru$ 9 taxable ye>s beg9n+    
aft] ,decemb] #ca1 #bjbe4  7#b7 ,c]ta9  
*anges ,! am5dm5ts made by p>agraphs    
7#a7 & 7#c7 ( subsection 7a7 %all apply 
to *anges t occur on or aft] ! date :i* 
is #fj days aft] ! date ( ! enactm5t (  
?is ,act4  7#c7 ,modification to special
 p]iod ( limitation ,! am5dm5ts made by 
subsection 7c7 %all apply to taxes paid1
 accru$1 or deem$ paid 9 taxable ye>s   
beg9n+ aft] ,decemb] #ca1 #bjbe4  #i4   
,repeal ( =eign tax cr$it haircut =     
global intangible l[-tax$ income  7a7 ,9
 g5]al ,section #ifj7;d77#a7 is am5d$ by

 /rik+ #hj p]c5t (4  7b7 ,con=m+ am5dm5t
 ,section #gh is am5d$ by /rik+ 7det]m9$
 )\t reg>d to ! phrase #hj p]c5t ( 9    
subsection 7d77#a7 !re(74  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s (    
=eign corporations beg9n+ aft] ,decemb] 
#ca1 #bjbe1 & to taxable ye>s ( ,unit$  
,/ates %>ehold]s 9 :i* or ) :i* su*     
taxable ye>s ( =eign corporations end4  
#aj4 ,application ( =eign-s\rce divid5d 
d$uction to am\nts receiv$ by controll$ 
=eign corporations  7a7 ,9 g5]al        
,section #bde;,a is am5d$ by r$esignat+ 
subsection 7g7 z subsection 7h7 & by    
ins]t+ aft] subsection 7f7 ! foll[+ new 
subsection3  7g7 ,application to c]ta9  
divid5ds receiv$ by controll$ =eign     
corporations f specifi$ #aj-,p]c5t own$ 
=eign corporations ,except z o!rwise    
provid$ by ! ,secret>y 9 regulations or 
o!r guidance1 if a controll$ =eign      
corporation ) respect to :i* a dome/ic  
corporation is a ,unit$ ,/ates %>ehold] 
receives a divid5d 7o!r ?an a hybrid    

divid5d7 f a specifi$ #aj-p]c5t own$    
=eign corporation ) respect to :i* su*  
dome/ic corporation is also a ,unit$    
,/ates %>ehold]1 ! am\nt includible 9 ! 
gross income ( su* ,unit$ ,/ates        
%>ehold] "u section #iea7;a77#a77;,a7 by
 reason ( ! =eign-s\rce portion ( su*   
divid5d %all be treat$ = purposes ( ?is 
section 9 ! same mann] z if su* am\nt 7 
! =eign-s\rce portion ( a divid5d       
receiv$ by su* ,unit$ ,/ates %>ehold] f 
su* specifi$ #aj-p]c5t own$ =eign       
corporation4  4  7b7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to di/ributions made 9 taxable ye>s (   
=eign corporations beg9n+ aft] ,decemb] 
#ca1 #bjbe1 & to taxable ye>s ( ,unit$  
,/ates %>ehold]s 9 :i* or ) :i* su*     
taxable ye>s ( =eign corporations end4  
7c7 ,no inf]5ce ,no?+ 9 ! am5dm5ts made 
by subsection 7a7 %all be con/ru$ to    
create any inf]5ce ) respect to !       
treatm5t ( divid5ds describ$ 9 section  
#bde;,a7g7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf 7z add$ by subsection 7a77 9      

taxable ye>s beg9n+ be=e ! taxable ye>  
describ$ 9 subsection 7b74  #aa4        
,elim9ation ( inclusion ( =eign base    
company sales income & =eign base       
company s]vices income  7a7 ,repeal     
,subsection 7a7 ( section #ied is       
am5d$-- 7#a7 by /rik+ ! sum ( & all t   
foll[s ?r\gh ! =eign p]sonal hold+      
company income 9 p>agraph 7#a7 & ins]t+ 
! =eign p]sonal hold+ company income1   
7#b7 by /rik+ ! comma aft] subsection   
7c7 & r$uc$ z provid$ 9 subsection      
7b77#e77 & ins]t+ a p]iod1 &  7#c7 by   
/rik+ p>agraphs 7#b7 & 7#c74  7b7       
,con=m+ am5dm5ts  7#a7 7,a7 ,section    
#ied7;d7 is am5d$ to read z foll[s3  7d7
 ,relat$ p]son def9$ ,= purposes ( ?is  
section1 a p]son is a relat$ p]son )    
respect to a controll$ =eign            
corporation1 if-- 7#a7 su* p]son is an  
individual1 corporation1 p>tn]%ip1 tru/1
 or e/ate :i* controls1 or is controll$ 
by1 ! controll$ =eign corporation1 or   
7#b7 su* p]son is a corporation1        
p>tn]%ip1 tru/1 or e/ate :i* is         

controll$ by ! same p]son or p]sons :i* 
control ! controll$ =eign corporation4  
,= purposes ( ! prec$+ s5t5ce1 control  
means1 ) respect to a corporation1 !    
own]%ip1 directly or indirectly1 ( /ock 
possess+ m ?an #ej p]c5t ( ! total vot+ 
p[] ( all classes ( /ock entitl$ to vote
 or ( ! total value ( /ock ( su*        
corporation4 ,9 ! case ( a p>tn]%ip1    
tru/1 or e/ate1 control means ! own]%ip1
 directly or indirectly1 ( m ?an #ej    
p]c5t 7by value7 ( ! b5eficial int]e/s 9
 su* p>tn]%ip1 tru/1 or e/ate4 ,=       
purposes ( ?is subsection1 rules simil> 
to ! rules ( section #ieh %all apply4  4
  7,b7 ,! foll[+ sections are am5d$ by  
/rik+ #ied7;d77#c7 ea* place x appe>s & 
ins]t+ #ied7;d73 7i7 ,section           
#afb7r77#f77;,b77ii74  7ii7 ,section    
#bej7;b77#b77;,d7 7z r$esignat$ by      
section #c74  7iii7 ,section            
#bfg;,a7b77#b74  7iv7 ,section          
#ijd7;d77#b77;,i74  7v7 ,section        
#iea;,a7c77#b77;,a77i77,,iv74  7vi7     
,section #iec4  7vii7 ,section          

#ief7;c77#b77,l77ii77,,ii74  7viii7     
,section #ieh7;b74  7ix7 ,section       
#iga7;f74  7x7 ,section                 
#ihh7;a77#c77;,c74  7xi7 ,section       
#abig7;b77#b74  7xii7 ,subsections      
7d77#c77;,a7 & 7e77#b77;,b77i7 ( section
 #abih4  7xiii7 ,section #adga7;e77#b74 
7xiv7 ,section #caba7z77#b74  7,c7      
,section #ied7;h77#e77;,e7 is am5d$ by  
/rik+ subsection 7d77#c7 & ins]t+       
subsection 7d74  7,d7 ,subp>agraphs 7,a7
 & 7,b7 ( section #ied7;i77#b7 are ea*  
am5d$ by /rik+ subsection 7d77#c7 &     
ins]t+ subsection 7d74  7#b7 ,section   
#ied is am5d$ by /rik+ subsections 7e7 &
 7g74  7c7 ,effective date ,! am5dm5ts  
made by ?is section %all apply to       
taxable ye>s ( =eign corporations beg9n+
 aft] ,decemb] #ca1 #bjbe1 & to taxable 
ye>s ( ,unit$ ,/ates %>ehold]s ) or )9  
:i* su* taxable ye>s ( =eign            
corporations end4  #ab4 ,corporations   
exempt f subp>t ,f inclusion = inve/m5t 
9 ,unit$ ,/ates prop]ty  7a7 ,9 g5]al   
,section #ief7;a7 is am5d$ by ins]t+    

7o!r ?an a corporation7 aft] ,unit$     
,/ates %>ehold] 9 ! matt] prec$+        
p>agraph 7#a74  7b7 ,effective date ,!  
am5dm5t made by ?is section %all apply  
to taxable ye>s ( controll$ =eign       
corporations end+ aft] ,decemb] #ca1    
#bjbe1 & to taxable ye>s ( ,unit$ ,/ates
 %>ehold]s ) or )9 :i* su* taxable ye>s 
( controll$ =eign corporations end4     
#ac4 ,o!r modifications relat+ to =eign 
tax cr$it  7a7 ,cr$itable taxes ,section
 #ija is am5d$ by r$esignat+ subsection 
7n7 z subsection 7o7 & by ins]t+ aft]   
subsection 7m7 ! foll[+ new subsection3 
7n7 ,det]m9ation ( income taxes ,=      
purposes ( ?is section1 a =eign tax %all
 be treat$ z an income tax if !         
pr$om9ant "* ( ! tax is an income tax4  
,! det]m9ations made "u ! prec$+ s5t5ce 
& "u section #ijc %all be made )\t reg>d
 to :e!r ! income or o!r base ( ! tax   
be>s a nexus to ! jurisdiction impos+ ! 
tax4  4  7b7 ,effective date ,! am5dm5ts
 made by ?is section %all apply to      
taxable ye>s beg9n+ aft] ,decemb] #ca1  

#bjbe4  #ad4 ,special rules = transf]s (
 intangible prop]ty f controll$ =eign   
corporations to ,unit$ ,/ates %>ehold]s 
7a7 ,9 g5]al ,subp>t ,f ( "p ,,iii (    
sub*apt] ,n ( *apt] #a is am5d$ by add+ 
at ! end ! foll[+ new section3  #iff4   
,transf]s ( intangible prop]ty to ,unit$
 ,/ates %>ehold]s  7a7 ,9 g5]al ,9 !    
case ( any di/ribution ( intangible     
prop]ty :i* is held by a controll$ =eign
 corporation on ! date ( enactm5t ( ?is 
section & :i* is describ$ 9 subsection  
7b7-- 7#a7 = purposes ( "p ,i ( sub*apt]
 ,c & any o!r provision ( ?is title     
specifi$ by ! ,secret>y1 ! fair m>ket   
value ( su* prop]ty on ! date ( su*     
di/ribution %all be treat$ z n exce$+ ! 
adju/$ basis ( su* prop]ty imm$iately   
be=e su* di/ribution1 &  7#b7 if !      
di/ribution is n a divid5d-- 7,a7 !     
,unit$ ,/ates %>ehold]'s adju/$ basis 9 
! /ock ( ! controll$ =eign corporation )
 respect to :i* su* di/ribution is made 
%all be increas$ by ! am\nt 7if any7 (  
su* di/ribution :i* w\ld 7b = ?is       

subsection7 be includible 9 gross       
income1 &  7,b7 ! adju/$ basis ( su*    
prop]ty 9 ! h&s ( su* ,unit$ ,/ates     
%>ehold] imm$iately aft] su* di/ribution
 %all be su* adju/$ basis imm$iately    
be=e su* di/ribution r$uc$ by ! am\nt ( 
! increase describ$ 9 subp>agraph 7,a74 
7b7 ,di/ribution ,a di/ribution is      
describ$ 9 ?is section if ! di/ribution 
is-- 7#a7 receiv$ by a dome/ic          
corporation f a controll$ =eign         
corporation ) respect to :i* su*        
corporation is a ,unit$ ,/ates %>ehold]1
 &  7#b7 made by ! controll$ =eign      
corporation be=e ! la/ day ( ! ?ird     
taxable ye> ( ! controll$ =eign         
corporation beg9n+ aft] ,decemb] #ca1   
#bjbe4  7c7 ,intangible prop]ty ,=      
purposes ( ?is subsection1 ! t]m        
intangible prop]ty has ! mean+ giv5 su* 
t]m by section #cfg7;d77#d7 or :i* is   
comput] s(tw>e describ$ 9 section       
#aig7;e77#c77;,b74  4  7b7 ,con=m+      
am5dm5ts  7#a7 ,section                 
#aig7;f77#b77;,b77i7 is am5d$ by ins]t+ 

#iff7;a71 aft] #gca14  7#b7 ,! table (  
sections = subp>t ,f ( "p ,,iii (       
sub*apt] ,n ( *apt] #a is am5d$ by add+ 
at ! end ! foll[+ new item3  ,sec4 #iff4
 ,transf]s ( intangible prop]ty to      
,unit$ ,/ates %>ehold]s4  4  7c7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to di/ributions made 
9 taxable ye>s ( =eign corporations     
beg9n+ aft] ,decemb] #ca1 #bjbe1 & to   
taxable ye>s ( ,unit$ ,/ates %>ehold]s 9
 :i* or ) :i* su* taxable ye>s ( =eign  
corporations end4  #ae4 ,global         
intangible l[-tax$ income det]m9$ )\t   
reg>d to c]ta9 income d]iv$ f s]vices   
p]=m$ 9 ! ,virg9 ,isl&s  7a7 ,9 g5]al   
,section #iea;,a7c77#b77;,a77i7 is am5d$
 by /rik+ & at ! end ( subclause 7,,iv71
 by /rik+ ! p]iod at ! end ( subclause  
7,v7 & ins]t+ 1 &1 & by add+ at ! end ! 
foll[+ new subclause3  7,,vi7 9 ! case (
 any specifi$ ,unit$ ,/ates %>ehold]1   
any qualifi$ ,virg9 ,isl&s s]vices      
income4  4  7b7 ,def9itions & special   
rules ,section #iea;,a7c77#b7 is am5d$  

by add+ at ! end ! foll[+ new           
subp>agraph3  7,c7 ,provisions relat$ to
 qualifi$ ,virg9 ,isl&s s]vices income  
,= purposes ( subp>agraph               
7,a77i77,,vi7-- 7i7 ,qualifi$ ,virg9    
,isl&s s]vices income ,! t]m qualifi$   
,virg9 ,isl&s s]vices income means any  
gross income :i* satisfies all ( !      
foll[+ requirem5ts3 7,i7 ,su* gross     
income is comp5sation = labor or p]sonal
 s]vices 7)9 ! mean+ ( section          
#hfb7;a77#c77 p]=m$ 9 ! ,virg9 ,isl&s by
 a corporation =m$ "u ! laws ( ! ,virg9 
,isl&s4  7,,ii7 ,su* gross income is    
attributable to s]vices p]=m$ f )9 !    
,virg9 ,isl&s by individuals = ! b5efit 
( su* corporation4  7,,iii7 ,su* gross  
income is effectively connect$ ) !      
conduct ( a trade or bus9ess )9 ! ,virg9
 ,isl&s4  7ii7 ,specifi$ ,unit$ ,/ates  
%>ehold] ,! t]m specifi$ ,unit$ ,/ates  
%>ehold] means any ,unit$ ,/ates        
%>ehold] :i* is-- 7,i7 an individual1   
tru/1 or e/ate1 or  7,,ii7 a closely    
held ,c corporation 7z def9$ 9 section  

#dfi7;j77#a77 if su* corporation acquir$
 its direct or indirect equity int]e/ 9 
! =eign corporation :i* d]iv$ ! qualifi$
 ,virg9 ,isl&s s]vices income be=e      
,decemb] #ca1 #bjbc4  7iii7 ,regulations
 ,! ,secret>y %all prescribe su*        
regulations or o!r guidance z may be    
necess>y or appropriate to c>ry out ?is 
subp>agraph & subp>agraph 7,a77i77,,vi71
 includ+ regulations or o!r guidance to 
prev5t ! abuse ( su* subp>agraphs4  4   
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s (
 =eign corporations beg9n+ aft] ! date (
 ! enactm5t ( ?is ,act1 & to taxable    
ye>s ( ,unit$ ,/ates %>ehold]s ) or )9  
:i* su* taxable ye>s ( =eign            
corporations end4